In re: Hercules Offshore, Inc.

Filing 5

Recommendation that Bankruptcy Appeal be withrawn from mandatory mediation. Signed by Judge Mary Pat Thynge on 10/30/15. (cak)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
IN RE: HERCULES OFFSHORE, INC.,

:
:
Debtors.
:
__________________________________ :
:
STEERING GROUP OF HOLDERS OF
:
SENIOR NOTES, THE STEERING
:
GROUP,
:
:
Appellant,
:
:
v.
:
:
OFFICE OF THE UNITED STATES
:
TRUSTEE,
:
:
Appellee.
:

Bankruptcy Case No. 14-11685 (KJC)
BAP No,. 15-54

C. A. No. 15-928-SLR

RECOMMENDATION
At Wilmington this 30th day of October, 2015.
WHEREAS, pursuant to paragraph 2(a) of the Procedures to Govern
Mediation of Appeals from the United States Bankruptcy Court for this District dated
September 11, 2012, the court conducted an initial review, which included information
from counsel, to determine the appropriateness of mediation in this matter;
WHEREAS, as a result of the above screening process, the issues
involved in this case are not amenable to mediation and mediation at this stage would
not be a productive exercise, a worthwhile use of judicial resources nor warrant the
expense of the process.
The parties jointly request that this matter be removed from mandatory
mediation. In this appeal, the Steering Group maintains that the Bankruptcy Court erred

in removing the exculpation of the Steering Group Parties from liability for certain
Restructuring-Related Actions, and limiting exculpation to estate fiduciaries and
modifying the Plan and the Proposed Order to remove exculpation from the Steering
Group Parties. The Trustee argues to the contrary. The parties note that this appeal
raises substantial issues of law not amenable to mediation and they believe that
mediation would not be productive or beneficial.
THEREFORE, IT IS RECOMMENDED that, pursuant to paragraph 2(a)
Procedures to Govern Mediation of Appeals from the United States Bankruptcy Court
for this District and 28 U.S.C. § 636(b), this matter be withdrawn from the mandatory
referral for mediation and proceed through the appellate process of this Court. The
parties are advised of their right to file objections to this Recommendation pursuant to
28 U.S.C. § 636(b)(1)(B), FED. R. CIV. P. 72(a) and D. DEL. LR 72.1. Since the parties
are in agreement regarding mandatory mediation, no objections are expected.
IT IS FURTHER RECOMMENDED at the request of the parties that the following
briefing schedule be adopted:
Opening Brief of the Steering Group

December 15, 2015

Answering Brief of the Trustee

January 29, 2016

Reply Brief of the Steering Group

February 29, 2016.

Local counsel are obligated to inform out-of-state counsel of this Order.
/s/ Mary Pat Thynge
UNITED STATES MAGISTRATE JUDGE

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